The current decade may be marked by significant changes in the CPG, retail, and e-commerce sector as innovations, mobile penetration, new competitors, diverse strengths and unforeseen challenges emerge. Worldwide e-retail revenues are projected to grow to $5.4 trillion in 2022. With the consolidation of players, mergers and acquisitions, evolving government regulations, and improved infrastructure, the retail and e-commerce sector is on everybody’s watchlist.
FMCG, Retail, & E-commerce
Digital Transformation in Retail and E-commerce
While the sector’s finance and accounting division has been significantly disrupted as a result of Digital Transformation, the responsibility for providing financial information to regulators and monitoring productivity and progress has changed significantly. The CPG industry is deploying big data analytics and AI to focus on direct distribution, keeping consumer convenience in mind.
Practus has worked with Family-owned, Private and PE-backed companies in the FMCG, retail, and e-commerce sectors. Real-world challenges like inventory management, procurement process improvement, collection reconciliation, rent process improvement, MIS, supply chain, SKU management have extreme cost implications. Practus brings digitization and process improvement expertise to resolve concerns for retail and e-commerce companies.
Consumer Packaged Goods
With F&B accounting for over 50% of the market segment in the CPG/FMCG space, there are clear indications of which way the market is headed. Many organizations find it difficult to track the effectiveness of trade promotions and understand the distributor’s real profitability. The sector has unique challenges that require specialized intervention.
Inputs from Practus have benefitted Family-owned and VC-backed companies in the fast-growing F&B/FMCG sector on market assessment and feasibility study, cash flow management, process controls, MIS, SKU logistics, and inventory management. Our assistance helps the marketing department make informed decisions for B2C spends for maximum gains. We deliver customized systems that deliver MIS time reduction, profitability reports, F&A process improvement, cost budget preparation, reporting management, working capital management, to ensure productivity, efficiency, and profitability.
The stockist, distributor, retailer are handicapped with limited visibility of inventory and stock-outs in the distribution chain, where constant availability and high-quality service are expected by customers. Compounding the problem, the manual forecasting mechanisms cannot accurately predict demand, causing an inability to effectively implement stock levels and credit limits for your distributors.
Practus comes in with transformative solutions that provide visibility on distributor claims and stock returns, efficient inventory management, MIS, managing 3P manufacturers, and logistics performance, continuous cost reductions in inputs, conversion costs, and overheads to benchmark against competition.
Practus prevents delays in carrying out account reconciliations with distributors and suppliers with automation, warns about inadequate return on B2C marketing spends which are not personalized to the customer, and pursues sustainability as an agenda for long-term gains.
Online retail has been rising consistently and the fashion and consumer electronics segments have grown tremendously. The success of an e-commerce business is dependent on high scalability and dependable partners who can share the journey. The very fact that B2C (Business-to-Consumer), B2B (Business-to-Business), C2B (Consumer-to-Business), and C2C (Consumer-to-Consumer) are all showing trends for growth, compel the sellers to configure for faster deliveries of quality offerings at affordable prices.
Practus helps with arriving at the price point which will draw customers and increase profitability across customers, Region, SKU, and channels. Since the product diversity is immense and sensitive goods like fresh groceries need to be delivered in good condition, it is critical to have visibility of inventory, stock-outs in the distribution chain, and fully automated storage and picking systems.